New Delhi: The Union government has invited fresh applications under the Production Linked Incentive scheme for promoting domestic manufacturing of medical devices (PLI-MD), for which nearly Rs 2,700 crore outlay has been earmarked.
The applicants can submit applications through an online portal, which would be operational in the next 10 days, according to an official statement issued on Tuesday.
Launched in 2021-22 the PLI-MD scheme has now been extended up to 2035–36.
The scheme has led to domestic manufacturing of more than 60 high end medical devices and components, including X-ray tubes and detectors, 1.5T MRI, LINAC, CT scanners, mammography machines, Cathlab, orthopaedic and cardiac implants, dialysers with the production valued at more than Rs 16,000 crore.
On the basis of learnings in the first phase of the scheme, a number of simplifications have been done in the eligibility conditions as well as procedure for claiming incentive by the applicants, the statement said.
“The applicants would be allowed three years for setting up their manufacturing facilities in any of the four target segments (TS) which include medical consumables, disposables and implants (TS 1), Critical components (TS2), high-end medical devices which are presently at a nascent stage of domestic manufacturing (TS3), and high-end medical devices that are presently only assembled in the country (TS4). The tapering incentive rate would be averaging around five per cent for TS1, nine per cent for TS2 and TS3, and six per cent for TS4,” the statement noted.
In the consumables and disposables segment, the focus will be on creating manufacturing scale and world class quality.
In the TS 3 and 4, priority will be given for value chain integration, so that there is an overall increase in competitiveness and quality of Made in India devices.
The focus on critical component manufacturing under the scheme, would help achieve value chain integration and also give a boost to the MSME sector.
Under the scheme, minimum sales threshold requirement to claim incentive has been discontinued, and minimum investment requirement has also been trimmed.
To enhance Ease of Doing Business, the scheme guidelines have been made easier and investor friendly.
The applicants would be free to submit any number of applications in one or more TS and the application window would remain continuously open over a long period of time.
PLI-MD 2.0 aims to fulfil the vision of Atmanirbhar Bharat and ‘Make in India’, develop indigenous supply chains, attract investment, generate employment, improve quality of Made in India devices, reduce price of medical devices, and enhance India’s global competitiveness in high-end medical technologies.
“The objective of the scheme is to promote deep manufacturing of medical devices, as well as manufacturing of high-end medical equipment like 3T MRI, PET-CT, Ultrasound probes and consoles and high-throughput IVD analysers which are currently not being manufactured in the country,” the statement added.
(IANS)
